The COVID-19 pandemic has upended lives across the country as officials struggle to curb its spread. As cities and states have put restrictions in place to slow infections, businesses of all kinds have felt the financial squeeze.
Certified public accountants have helped guide their clients through this troubling time as they try to navigate the sudden financial strain the pandemic has brought. The CARES Act provided some relief for businesses, dispersing more than $525 billion through the Paycheck Protection Program. As the time comes for businesses to apply for PPP loan forgiveness, CPAs can provide vital assistance to ensure success for their clients. Here are some things to keep in mind while helping clients with PPP loan forgiveness.
Do your clients qualify?
Your client was able to secure a PPP loan early on in the pandemic that helped them stay afloat. But, are they eligible for loan forgiveness now? This is an important question that business owners are counting on their accountant to make clear for them. CPAs need to keep their clients informed of the requirements throughout the loan process to ensure they qualify for full forgiveness. Keeping the right number of employees on the payroll and avoiding big payouts are important factors that will affect a business’s qualification for forgiveness. A CPA can help clients meet this and other requirements before submitting their application.
Completing forgiveness applications
It’s no surprise that PPP loans can be confusing, especially for business owners dealing with a mountain of stress just trying to keep food on the table for themselves and their employees. Having a good CPA on their side is an invaluable aid for business owners during these difficult times.
Michael Anderson is a 25-year veteran of the Property and Casualty (P&C) insurance industry. As Business Owner of Guidewire Predictive Analytics, he is focused on delivering advanced analytics solutions that enable Smart Core systems to the P&C Industry. Prior to joining Guidewire Software, Michael led Audatex U.S. Data Science and Analytics teams and served as Director, Travelers Insurance where he co-managed countrywide Auto Physical Damage Claim Operations.
Stephanie serves Security & Risk Professionals. She leads a team of analysts who provide research and advisory services on topics like IT security frameworks; governance, risk, and compliance (GRC); identity and access management (IAM); application security; data… (Read Full Bio)security; and IT infrastructure security. She also provides Forrester's coverage of specific risk topics including business continuity, IT continuity/disaster recovery, and backup and recovery.Previous Work ExperienceStephanie has more than 12 years of experience in BC/DR, backup and recovery, and information storage industries. Prior to joining the Security & Risk team, Stephanie was a principal analyst on Forrester's Infrastructure & Operations team, where she was instrumental in the development of Forrester's research and offerings in continuity, availability, and information storage and protection.Prior to joining Forrester, Stephanie was a senior analyst with Yankee Group, where she provided insight on technology trends to key system, storage, and information protection vendors and consultative advice on strategic and tactical initiatives. Before Yankee Group, Stephanie worked at EMC, first as a technical architect and then as a senior education and productivity consultant. As a technical architect, she articulated EMC's value to partners and customers and designed solutions to meet customer and new market opportunities. As an education and productivity consultant, she managed and supported complex technical training programs for business and practice managers in EMC's Technology Solutions Group. Prior to EMC, Stephanie worked at Accenture as a consultant, focusing on the implementation of business applications (SAP, PeopleSoft) for global businesses.EducationStephanie holds a bachelor's degree in business administration and finance and investments from Babson College.
Jeremiah Cruit is the chief information security officer at ThreatX.
Keeping track of expenses and documentation after the loan is received and getting the correct paperwork put together for the forgiveness application is essential. Make sure clients meet deadlines, turn in the correct forms, and stay in touch with their lender throughout the application process. Give clients the confidence that their application is thorough and accurate to give them the best chance of their loan being fully forgiven.
Staying on top of changes
Of course, the confusion that has occurred with the Paycheck Protection Program doesn’t belong just to borrowers. Some CPAs may find they have a few questions along the way as well. Lawmakers hurried to get financial assistance to cash-strapped businesses when COVID-19 shut down the country; there were bound to be a few snags and revisions to the program. The federal government has put out notices and questions and answers to clear up issues along the way, and changes have been made to the program as the pandemic raged on through the year. It’s up to CPAs to stay apprised of these changes and updates to FAQs so they can properly assist clients. There are still more questions to be answered, including tax issues, so this is a continual process.
CPAs can provide valuable assistance to their clients who are doing their best to stay in business in the midst of a pandemic. Stay informed about the PPP loan forgiveness process and give clients a reliable adviser in their corner to guide them through the process.
